TORONTO--A recent study, that is bound to make security vendors jump for joy, has found that medium- and large-sized retailers are increasing their use of security technologies to cut down on the ever-growing effects of organized retail crime and more traditional methods, such as shoplifting and employee theft.
The survey, conducted by the Retail Council of Canada and PricewaterhouseCoopers, found that Canadian retailers still expect most of their losses in the future to come from internal and external theft -- merchandise theft by customers (62 percent) and merchandise theft from employees (33 percent.)
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In response to these problems that cut into already small margins, retailers are using myriad store security and loss prevention measures to take control. One hundred percent of respondents indicated they use alarm systems and 90 percent currently have video surveillance systems in place.
"This speaks to the challenges that are being faced -- they are on the rise," Derek Nighbor, senior vice president, national affairs with RCC, said. "Retailers are taking this seriously."
He also noted that retailers are being proactive in implementing ongoing technology improvements and upgrades. Other than alarms and video systems, stores are also incorporating exception reporting, internal controls and increased staffing.
"A vigilant staff cannot be underestimated," he said.
The growing use of video has had a direct impact on the increasing rate of prosecutions for merchandise theft because retailers are providing law enforcement and courts with visual evidence. Although 85 percent of respondents dismiss offenders with cause, 62 percent are proceeding with criminal charges against employees and 80 percent pursue criminal charges against customers.
Diane Brisebois, president and CEO of RCC, said the survey shows that there is a need for government, law enforcement, the courts and the industry to work cooperatively to deal with areas of loss.
Results also showed that 91 percent of retailers surveyed perform pre-employment screening before hiring new staff.
"Loss prevention starts with hiring and maintaining good staff," Nighbor said. "Technology is an increasingly important way to augment that effort in the store."
Canada does not have an information-sharing system in place similar to the U.S.' LERPnet because "there are very different privacy laws in Canada that are much more restrictive in the way retailers can protect themselves." But the RCC does have an internal portal where members can share event descriptions.
Nighbor said the survey has been conducted for the past few years, but this is one of "the most in-depth surveys" to date.
"It is out job to continue to hammer out this issues and to continue to raise awareness," he said. "Criminals are becoming more sophisticated and tactics are becoming more diverse."
Survey data was analyzed and collected between October 2007 and March 2008, based on Internet polling, phone surveys and face-to-face discussions, with information being provided voluntarily.
